KKR & Co. Inc. (KKR) and Singapore's largest mobile operator, Singtel, just signed one of the biggest digital infrastructure deals Southeast Asia has seen. And when you look at the numbers, it's clear why data centers have become the hottest real estate in tech.
The consortium—funds managed by KKR alongside Singtel—is acquiring the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia. The price tag? S$6.6 billion, which translates to about $5.1 billion. Factor in debt and committed capital expenditures, and you're looking at an enterprise value of roughly S$13.8 billion (around $10.9 billion).
The deal is expected to wrap up by early second half of 2026, assuming all the usual regulatory boxes get checked. When the dust settles, KKR will own 75% of the company, with Singtel holding the remaining 25%.
Why This Matters
STT GDC isn't some niche player. This is a globally diversified data center platform boasting 2.3 gigawatts of design capacity spread across 12 markets in Asia Pacific, the UK, and Europe. The company provides colocation services, connectivity, and round-the-clock support—exactly what businesses need as AI applications and cloud computing continue their explosive growth.
This isn't KKR and Singtel's first rodeo with STT GDC, either. The consortium initially poured S$1.75 billion (about $1.3 billion) into the company back in 2024 through preference shares and warrants. That investment was Southeast Asia's largest digital infrastructure deal that year, and it's clearly paying off. Since then, STT GDC has expanded its development pipeline from 1.4 gigawatts in 2024 to more than 1.7 gigawatts today.
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR, spelled out the investment thesis: "Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored, and processed."
He added, "This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel. We look forward to deploying KKR's global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth."
For Singtel, the move fits squarely into its broader growth strategy. Arthur Lang, Group Chief Financial Officer of Singtel, explained: "This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan. STT GDC's diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach."
Building a Global Empire
The KKR-Singtel consortium has been busy assembling a serious portfolio of data center assets worldwide. Their investments include CyrusOne and Global Technical Realty, both of which have established strong presences in Europe and the UK.
Since launching in 2019, KKR's Asia Pacific infrastructure platform has ballooned to approximately $16 billion in assets under management as of September 30, 2025. That's some serious firepower in a sector that shows no signs of cooling down.
KKR is scheduled to report fourth-quarter results on February 5. As for the stock, KKR shares were trading up 0.41% at $103.70 in premarket action Wednesday.
